We recently saw an article that broached the idea of a NASCAR-focused exchange traded fund (ETF). It’s one of the most popular sports in the United States and a number of the country’s biggest companies are front-and-center as sponsors of popular drivers.
Given the cost involved in sponsoring a NASCAR team, the companies that are involved in the sport are considered blue chips by any definition. So why not a NASCAR-focused ETF? The ETF Professor on Benzinga reports that no sport in the United States is as dependent on corporate sponsorship dollars as NASCAR is. Unless drivers are willing to fund the venture themselves, few make it onto the track without some serious backing.
Since so many ETFs are niche funds, a NASCAR fund doesn’t seem like such a wacky idea.
Of course, if you’re too eager to wait for a NASCAR ETF, many of these companies can be incorporated into your portfolio via several of the large-cap ETFs, including the SPDR Dow Jones Industrial Average (NYSEArca: DIA).
Oh, and be informed, there are no plans current or otherwise to actually implement this plan; it is merely a lofty idea at this point.
For more stories about new ETFs, visit our new ETF category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.